From CNBC News: The Federal Reserve on Wednesday approved a widely anticipated rate cut and signaled that two more are on the way before the end of the year as concerns intensified over the U.S. labor market.
In an 11-to-1 vote signaling less dissent than Wall Street had anticipated, the Federal Open Market Committee lowered its benchmark overnight lending rate by a quarter percentage point. The decision puts the overnight funds rate in a range between 4.00%-4.25%.
Newly-installed Governor Stephen Miran was the only policymaker voting against the quarter-point move, instead advocating for a half-point cut.
Governors Michelle Bowman and Christopher Waller, looked at for possible additional dissents, both voted for the 25-basis point reduction. All were appointed by President Donald Trump, who has badgered the Fed to cut not merely in its traditional quarter-point moves but to lower the fed funds rate quickly and aggressively.
Two more cuts are expected this year, in October and December.
The Federal Reserve released a statement which reads, in part, as follows:
Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.
In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4‑1/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
Federal Reserve issues #FOMC statement: https://t.co/j7A6jZMTdc
— Federal Reserve (@federalreserve) September 17, 2025
Federal Reserve officials lowered their benchmark interest rate by a quarter percentage point and penciled in two more reductions this year following months of intense pressure from the White House to slash borrowing costs.
Michael McKee reports https://t.co/odrj4qIuF1 pic.twitter.com/bEiSdAL0Am
— Bloomberg TV (@BloombergTV) September 17, 2025
JUST IN: The Federal Reserve cuts interest rates by 25 basis points. pic.twitter.com/cSInvcsCYi
— Brew Markets (@brewmarkets) September 17, 2025
Fed rate cut: Here’s what it means for your mortgage rate, credit cards, savings accounts and more https://t.co/6ZdVAHASJe
— CNBC (@CNBC) September 17, 2025
As a result of the announcement, the Dow quickly jumped 400 points Wednesday afternoon.
Dow jumps 400 points as Fed lowers rates and forecasts two more cuts this year: Live updates https://t.co/dVpQiHr56x
— CNBC (@CNBC) September 17, 2025
READ MORE from CNBC News.
Follow us on X (Formerly Twitter.)
The DML News App: www.X.com/DMLNewsApp
